International & Expatriate Tax

In an increasingly global economy there are many businesses and individuals who have international dealings and those dealings can give rise to complex tax obligations.

Individuals

Many Australians work overseas and many people from other countries come to Australia under special visas that permit them to work. For people in both categories, they may have to deal with tax obligations in two countries. Special tax rules apply and people in either category need to seek professional assistance from an experienced tax advisor.

An example of an issue that Australians working overseas faces is whether they remain an Australian resident.

For most, being recognised as a non-resident by the Australian Taxation Office (“ATO”) means the individual is not subject to Australian taxation on their overseas earnings. On the other hand, there can be capital gains tax issues arising when a person ceases to be an Australian resident and when a non-resident comes to live permanently in Australia. However, dealing with these issues can involve complex analysis of the taxation laws and, in some cases, requires lodgement of a special ruling to the ATO asking for its opinion on the tax status of an individual. Working out residence for taxation purposes can be extremely complicated.

For people coming from other countries, especially Asian countries to work in Australia, it may be possible to apply for an exemption from the Medicare Levy.

Daynes Advisory can assist with a wide range of international and expatriate tax matters, including tax residence; business structuring for offshore and inbound investment; the impact of International tax Agreements on taxation in Australia and other countries; advising on remuneration for inbound and outbound employees and advising employers on their local and overseas obligations.

Businesses

Australian businesses looking to expand overseas and foreign businesses setting up operations in Australia must understand the implications of operating under the legal framework of another country.

An understanding of the tax systems in more than one country is critical to making the best choices for structuring and operating in another country. In the worst-casescenario the costs of poor planning can be substantial.

Many employers second staff to overseas offices or bring staff into Australia to fill skill shortages. Employers seconding employees into or out of Australia need to understand all of the applicable the employer obligations so that secondments can be managed without infringing Australian and foreign tax laws. Careful advance planning might also exploit and maximise opportunities to optimise employee remuneration.

Daynes Advisory has many years’ experience helping individuals and businesses navigate their way through the maze of taxation laws and regulations that affect business and individuals who are confronted with complex international tax issues.